Catenaa, Wednesday, November 26, 2025-US lawmakers are advancing bipartisan legislation that would bar companies receiving federal CHIPS Act subsidies from purchasing Chinese chipmaking equipment for the next decade.

The proposal targets national security risks and seeks to prevent US funds from indirectly boosting China’s semiconductor sector.

The Chip Equipment Quality, Usefulness, and Integrity Protection Act, or Chip EQUIP Act, was introduced in the House by Representatives Zoe Lofgren and Jay Obernolte.

Senators Mark Kelly and Marsha Blackburn are expected to present a companion bill in December. The legislation covers equipment from China, Iran, Russia, and North Korea, including lithography and wafer processing machines.

A waiver process may allow purchases if the equipment cannot be sourced from the US or allied countries.

The restrictions apply only to equipment imported into the US, leaving overseas operations unaffected. The move comes as major CHIPS Act beneficiaries, including Intel, TSMC, and Samsung, expand domestic production using $39 billion in government funding. US toolmakers are under pressure as prior export controls have already reduced China’s addressable market.

Applied Materials warned a broader crackdown could cut its 2026 revenue by $600 million.

China is accelerating domestic semiconductor development with over $40 billion in state support.

Companies such as Naura Technology Group have gained market share globally, climbing to sixth among semiconductor equipment suppliers in 2024, while firms like SiCarrier and AMIES develop advanced lithography systems.

Proponents of the Chip EQUIP Act argue it is vital to safeguard US industrial capacity and maintain technological competitiveness. The Senate is expected to review the legislation in December.